The 2025 Spring Budget brought several important updates, one of which has raised eyebrows in the property world is the rise in Employer National Insurance Contributions (Employer NICs). From 6 April 2025, changes will affect the cost of employing staff—something that matters more than you might think in the property market.
At Christopher Anthony Property Experts, we’re looking at how these changes could impact landlords, estate agents, and investors, especially in Hampshire and Surrey
What’s Changing with the rise of Employer NICs?
From April 2025:
- The Employer NICs rate is rising from 13.8% to 15%.
- The threshold at which employers start paying NICs will drop from £9,100 to £5,000.
That means employers will pay more tax on a more significant portion of their employees’ wages.
Why This Matters in the Property Market
These changes could impact our market in a number of ways:
- Estate Agents and Property Companies
Agencies and lettings businesses—especially those managing large portfolios—will face higher employment costs. These increases may lead to:
- Tighter recruitment in roles like lettings managers or sales negotiators
- Higher service fees are passed on to landlords
- Increased focus on automation or outsourcing to manage overheads
- Landlords with Staff
Suppose you’re a landlord employing on-site maintenance workers, cleaners, or part-time admin support. In that case, you must now budget for higher tax contributions. While smaller landlords may not be affected, portfolio landlords and those scaling up must factor this into their yield calculations.
- Pressure on the Rental Market
When Employer NICs rise and payroll becomes more expensive, costs often get passed on. That could mean:
- Rent increases, particularly in high-demand areas like Reading, Wokingham, and Basingstoke
- More landlords reassessing the profitability of buy-to-let
The Bigger Picture: Add the Renters Reform Bill
Alongside the Employer NICs changes, landlords are also preparing for the long-awaited Renters Reform Bill, which aims to:
- Abolish Section 21 evictions
- Introduce a new “Decent Homes Standard” for the private rented sector
- Create a more balanced legal framework for tenants
- Rent increases are to be limited to once per year.
Together, these changes place additional pressures on landlords—through higher compliance expectations, rising operational costs, and uncertainty around tenancy management.
What Buyers and Sellers Should Know
For buyers—especially those looking at rental investments—this means:
- Taking a close look at running costs, not just mortgage rates
- Budgeting for ongoing changes in legislation and employer obligations
These changes may accelerate selling decisions for sellers, especially those exiting the buy-to-let market, creating new opportunities for first-time buyers and landlords seeking to expand.
The increase in Employer NICs, combined with the Renters Reform Bill, marks a clear shift in the property market. Landlords, agents, and investors in Hampshire and Surrey must stay ahead of taxation and legislative change to protect their margins and continue to grow sustainably.
At Christopher Anthony Property Experts, we’re here to help our clients adapt, plan, and make confident property decisions. If you’re concerned about how these updates might impact your property strategy, let’s talk.
